SBI Life Insurance Co Ltd and New India Assurance are in talks for a tie-up to offer bundled products for their micro-insurance foray, sources close to the developments told Hindustan Times. The regulations allow one life insurance player to tie-up with one general insurance player to tie-up to offer bundled products for rural and micro-insurance products. They can also pick up one bank as a banc assurance partner.
SBI Life Insurance Co Managing Director, S Krishnamurthy said in an interview with Hindustan Times that the company is in talks with one public sector general insurance player for the micro-insurance foray.
Sources said that since New India Assurance products are distributed through the State Bank of India’s network of branches, it is a natural choice for SBI Life to choose New India Assurance as their partner.
Krishnamurthy added that a tie-up should be in place within two months and that the company will be able to develop and offer products through State Bank of India’s rural branches for rural customers.
SBI Life Insurance has used the banc assurance route for rapid growth and has drawn up further plans to use the huge network of State Bank of India branches. Krishnamurthy said “We are seeking relaxation from the IRDA for some of the training norms so that we are able to bring in more SBI staff as sellers of insurance.”
Krishanmurthy said that SBI has asked the Insurance Regulatory Development Authority to bring down the number of days of training to seven from the current 18. “We also want the IRDA to allow trainees to appear for examination after self-study.”
Meanwhile, the Insurance Regulatory Development Authority is considering relaxing the norms for micro-insurance. It is likely to allow the life and general insurance companies to tie up with more than one partner for bundling products for micro-insurance.